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Problem:

Start Up Plc is expected to pay a dividend of £4.75 per share at the end of year 1 and these dividends are expected to grow at a constant rate of 3.5% per year forever.

Required:

Question: If the required rate of return on the stock (and all stocks of the same risk class) is 12%, what is the current value of the stock today?

Note: Provide thorough explanation of the given question.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174300

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